NGS Crypto, an Australian cryptocurrency company, has rebranded its name to “Hiddup” amid an ongoing investigation and legal action by the Australian Securities and Investments Commission (ASIC).
NGS Crypto reportedly invoked a trademark dispute for the rebranding on June 25. This occurred in an ASIC case concerning approximately 61 million Australian dollars ($41 million) in interest repayments to investors.
In April, the company’s directors, Brett Mendham, Ryan Brown, and Mark Ten Caten, had their assets blocked, in addition to the firm’s funds.
The allegations and actions of ASIC
After liquidating three crypto mining entities affiliated with NGS: NGS Crypto Pty Ltd, NGS Digital Pty Ltd, and NGS Group Ltd, ASIC initiated litigation against them.
The companies allegedly directed their efforts toward Australians to establish self-managed superannuation funds. Subsequently, they converted the funds into digital assets to engage in blockchain mining packages that offered guaranteed returns.
According to ASIC’s preliminary investigation, the NGS companies attracted approximately $41 million in investments from more than 450 Australians.
The financial authority claims that NGS companies violated the country’s laws by offering financial services without an Australian financial services license. ASIC seeks interim and final injunctions as part of the proceedings to prevent NGS from continuing its operations without appropriate licensing.
In the wake of these developments, the Federal Court has appointed McGrathNicol, an advisory and restructuring firm, as receivers. This appointment will aid creditors in the recovery of their funds.
Furthermore, the authorities have confiscated Mendham’s passport and are still investigating the whereabouts of the $41 million that is missing.
Rebranding initiatives and trademark disputes
Amid the investigation, ASIC is aware of NGS’s endeavors to rebrand, according to The Australian. According to a spokesperson for ASIC, the matter is currently under investigation.
In 2022, NGS Super, a superannuation fund, initiated legal proceedings against NGS Crypto. The latter was accused of violating laws and trespassing on copyright by luring investors and feigning affiliation with the NGS Super’s funds.
NGS Super emphasized that it does not sell cryptocurrency or related products. According to NGS Crypto, the ongoing trademark dispute was the reason for the rebranding to Hiddup. According to the NGS Crypto website, the rebranding aimed to distinguish the business and prevent confusion.
The company continues to advertise returns ranging from 6 to 16 percent per annum through blockchain mining on its website despite the court action.
